Batik craft industry in Madura faces the challenge to ACFTA - CEPT, in the form of cheaper price and mass production craft quality. While, the craft industry in Madura still maintain the uniqueness and shades of local culture. This mixed mode of quantitative and qualitative research had conducted by involving a number of respondents and stakeholders conducted during the year. Several competitiveness factors needs to be upgrading in responding to such policies. The uniqueness and shades of cultural design and creative human resources are essential in enhancing the competitiveness. In addition, the government also expected to participate in the effort to help make patent craft products to keep the rights of the artisans that also create business opportunities and work for local communities. In addition, local governments expected to help improve the ability of artisans by providing training related to improving the quality of craft production along with the diversity of designs that charged with local culture. However, the government expected to strengthen efforts to promote a distribution site that can facilitate purchase access to tourists.